Concerns over access to savings

A TRADE union official has criticised the way private sector workers were told by the Government to withdraw their superfund savings while civil servants continued to be paid their full salary.
Vera Raga, the PNG Trade Union Congress representative on the Nasfund board, said while public sector workers were protected, there was no subsidy for private sector workers.
He said it was discriminatory.
“There is a wage coverage for public sector workers (but) there is no wage subsidy for private sector workers,” he said. “Private sector workers are forced to take their (retirement savings from) the superfunds.
“The savings are for their long-term (benefit).
“This is the disparity happening between the public and the private sectors.”
Raga also called on the Government to clarify how the K250 million package was going to be spent.
“Does it cover private sector workers’ wages subsidy, leave entitlements?” he said.
“Does it cover taking superfund up to the allowed amount?
“In terms of any notion that there would be cash disbursement from the superfund to the Government, this is not the case.
“The law under the Superannuation General Provision Act states that workers only after leaving work after three months of service will access their own funds.
“That needs to be made clear consistent with the association of superfunds, if there will be any changes to the work in progress very specific to the Covid-19.”